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Morning Briefing

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Wednesday, Jul 15 2020

Full Issue

Drug Investments Under Fire Over Possible Conflicts Of Interest

HHS says a Trump aide can sidestep ethics disclosures while making decisions about government contracts; management consulting firm McKinsey scoops up COVID-related contracts; lawmakers skeptical of vaccine developers' "no-profit" pledge.

The co-director of President Trump鈥檚 Operation Warp Speed can maintain extensive investments in the drug industry and avoid ethics disclosures while he continues to make decisions about government contracts for promising coronavirus vaccines under a decision this week by the Health and Human Services inspector general. Monday鈥檚 ruling by the Office of Inspector General came in response to a complaint filed by the advocacy groups Public Citizen and Lower Drug Prices Now. The groups said the Trump administration has carved out an improper exception to federal conflict of interest rules for Moncef Slaoui, a venture capital executive and former high-ranking official at drug giant GlaxoSmithKline. (Rowland, 7/14)

In a matter of weeks, McKinsey had extracted a total of $40.6 million in no-bid contracts out of its initial agreement with one federal agency. The firm has continued to scoop up COVID-19-related contracts for various governments since then. Altogether, in the four months since the pandemic started, the firm has been awarded work for state, city and federal agencies worth well over $100 million 鈥 and counting. (MacDougall, 7/15)

Some of the pharmaceutical companies developing Covid-19 vaccine candidates have pledged to not take a profit. But neither the companies nor the U.S. government bankrolling a great deal of the vaccine research has defined precisely what forgoing a profit means or how long that will last. And that鈥檚 feeding skepticism and uncertainty among industry watchers and doubts in Congress about who will end up paying what could be a very large tab. 鈥淎 drug company鈥檚 claim that it鈥檚 providing a vaccine at cost should be viewed with the same skepticism as that by a used car salesperson,鈥 Rep. Lloyd Doggett (D-Texas), a leading critic of the industry in Congress, told POLITICO in an email. (Brennan, 7/13)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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